Your company prepares financial statements only once a year. In accounting for uncollectible accounts it uses the allowance method.
For the most recent year give general journal entries for the following.
Beginning of the year balances:(No journal entries needed for beg. Balances)
Accounts Receivable 256,200
Allowance for uncollectible accounts 6,250
Uncollectible Accounts Expense -
1 Sales for the year were 1,585,000. 70% of sales are credit sales
2 Collection on credit sales for the year were 1,070,000
3 Wrote off 10500 of specific customer accounts
4a At year end estimate uncollectible accts to be 1.75% of credit sales
4b Instead of 4a, the company ages it receivables and estimated 7500 as uncollectible